Andhra opening more land & properties for tourism development; pushing pvt. investment

The policy push is already attracting investment. The state has reported tourism investments of around INR 20,000 crore: AP Tourism Minister 

Andhra Pradesh’s Tourism, Culture and Cinematography Minister, Kandula Durgesh, said the state government had accorded industry status to tourism, describing it as a significant step towards accelerating investment and development in the sector. He said the government had also introduced policies to encourage job creation, homestays, tent cities, and greater private participation in tourism projects. 

The government is opening up land and properties with tourism potential for development. According to the minister, land parcels available with the government have been placed in the public domain, while the Chief Minister has also directed that land under other departments could be considered for tourism projects where appropriate.

Homestays, heritage properties and tent cities are among the formats being pushed to diversify the state's accommodation and experience offering. Durgesh said traditional houses in tribal, rural, plain and backwater areas could be developed as homestays, creating both tourism products and local livelihood opportunities. A dedicated homestay policy has been introduced, alongside plans for tent cities, with the objective of creating distinctive accommodation and experiences for visitors.

Employment generation is another key focus. The minister said the government had introduced an employment-generation policy under which tourism projects creating larger numbers of jobs would receive government support. The policy push is already beginning to attract investment. Andhra Pradesh has attracted nearly INR 20,000 crore in tourism investments through 117 Memoranda of Understanding (MoUs) under the AP Tourism Policy 2024-29.

While a city convention bureau in Vizag is being discussed, Andhra is also sharpening its focus on weddings, beach tourism, adventure experiences and religious travel. The identified destination weddings in Visakhapatnam and Tirupati have been identified as emerging opportunities, while beach destinations such as Suryalanka are witnessing rapid growth following improved road connectivity from Hyderabad. Also, places like Araku and Gandikota are experiencing a tourism surge. 

In terms of numbers, the state recorded a 17.7% increase in domestic tourist arrivals in 2025-26, rising from 28 crore to 36 crore visitors. It is further expected to move up from number four to two in terms of domestic arrivals by this year end.

Further, the state is also seeking to diversify its tourism portfolio through spiritual, cultural, wellness, yoga and Ayurveda tourism, besides exploring opportunities around its natural landscapes and coastal assets. The minister said private investors were already coming forward to undertake tourism-related activities through public-private partnership models.

Ahead of the recently concluded 41st IATO Annual Convention held in Visakhapatnam, the tourism minister had also made a direct pitch to tour operators to look beyond the state’s established pilgrimage destinations and help develop and promote a wider tourism basket. Durgesh stressed that the state had the potential to offer many of the experiences available across India, but that stronger visibility and market access were required to convert that potential into actual tourist movement.

For the travel trade, the minister sees the convention as an opportunity to move from policy discussions to product development. He called on IATO members to visit different parts of Andhra Pradesh, experience its offerings and work with the government on an actionable roadmap for taking the state's tourism products to domestic and international markets.